Japan is considering cutting its cryptocurrency tax rates by half, potentially impacting Bitcoin and other cryptocurrencies. This move aims to attract Web3 businesses and investors by creating a more favorable regulatory environment. The proposal, which would lower taxes on profits from crypto trading, comes as part of an initiative to support the development of Japan’s Web3 ecosystem. Currently, crypto gains are taxed under a system that sees rates climb up to 55% based on income bracket, hindering innovation and attracting talent away from Japan. By reducing the tax burden, the country seeks to become more competitive with other global crypto hubs such as Singapore and Dubai. This proposal could encourage Japanese citizens and companies to engage more in the domestic crypto market instead of relocating to international locations.